How Lending and Borrowing Protocols Work in DeFi

DeFi promises to replace banks with code. What does that actually look like in practice? You get lending protocols that operate 24/7, ask for no identity verification, and let anyone with a cryptoc...

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How Lending and Borrowing Protocols Work in DeFi

Source: be1crypto.com

DeFi promises to replace banks with code. What does that actually look like in practice? You get lending protocols that operate 24/7, ask for no identity verification, and let anyone with a cryptocurrency wallet become both lender and borrower. The mechanics are more elegant than the jargon suggests—and understanding them is essential before you stake…